Pekin passes grocery tax, taking away $1M in savings for shoppers

Pekin and Normal have joined the list of local governments passing ordinances to replace the 1% statewide grocery tax when it expires.

The Pekin City Council voted 4-3 to pass a local 1% grocery tax once the statewide tax ends. Pekin shoppers would have saved more than $1 million, or $133 for a family of four.

Normal voted to do the same. Residents would have saved nearly $2.3 million a year, or $174 for a family of four. Look below to see how much shoppers in your town or city would save if your town leaders choose not to impose a grocery tax when the statewide tax expires in 2026.

While the grocery tax is ending at the state level, the revenue went exclusively to local governments, who must now choose between 1% savings on groceries for residents and keeping their revenue streams intact.

Illinoisans statewide saved $360 million in one year when Gov. J.B. Pritzker and lawmakers suspended the 1% grocery tax.

Illinois is one of only 13 states with a grocery tax and the only state among the 10 most populated. Local governments in those states get by just fine.

Gov. J.B. Pritzker on Oct. 6 said taxing Illinoisans at the grocery store was one of the most regressive ways to tax people.

“It was the most regressive tax you could possibly have, taxing people on food,” Pritzker said. “Wealthy people, middle-class people can afford to go to the grocery store and pay 1%. Everybody else, it’s hard. That’s one of the reasons I went after it.”

At the same event, Pritzker called the statewide grocery tax “kind of embarrassing.”

Local governments across the state have until October 2025 to notify the state if they are passing a local grocery tax or passing savings onto shoppers.

Peoria passed its budget without adding a local grocery tax, meaning it will expire and shoppers will see more than $4 million in savings. Pekin residents can go there or to the nearest grocery store outside the city if they want to save 1% on groceries starting in 2026.

So far, Highland, Martinsville and Central City have passed local grocery taxes. Suburban River Forest and Palos Park leaders are both considering the tax, while neighboring Oak Park has rejected it.